Alma record. (Alma, Mich.) 1878-1928, 1887-12-16
A REFORM MESSAGE.
The Financial Question Plainly
Stated and FOrcibly Discussed.
Taxation Must be Immediately Re-
duced.

The following is the full text OF President
Cievelands annua, message sent to Con
gres Deceit:
10 The Congress or The Tinted States.
You are confronted at the threshold OF
your legislative duties. with a condition
of the n stional finances which imperative
ly demands Immediate aud careful con id
eratlon. The amount OF money annually
rscei through the operation OF the
present laws, from the industries and ne
cessitles OF the people, largely exceeds the
sum ne essary TO meet the expenses or the
government W hen we consider the theory
OF our institutions guarantees To every
cit. Ell the fruits OF his industry and en-
teiprlse with only sucn deduction as may
be his sh e towards the careful and
economics main enance of the govern
hent which protects him, II Is plain that
the exat ton ot more than this IN indefen-
slble ana culpable tetraysi OF fairness
aud Justice
WIS or oNFE-TAXATION.
This wrong inflicted upon those who
bear the burden o nati MAJ taxation. like
other wronss, multipueS IA brood OF taxa
ton aud EVIL conse uences. he public
treas ry, which should only exist as n
conduit conveying the people tribute to
its legitimate ob ects OF expenditure, re-
comes boarding place for money need
lessly withdrawn from trade and the peo-
pie suseN, thus Gripping our national ener-
Sies usurping our country Development,
preventing Investment in productive en-
-""e and inviting schemes OF public plum
der.
is condition of eur treasury j. not a
together new and II has more than once
OF late been submitted TO the peoples
representatives Ia congress who alone can
apply remedy, and yet the situation still
continues with aggravstive incidents more
than ever pressing financial CONFUSION
ana wide spread disaster.
MUST NOT IGNORE THE DANGER.
III
because its dangers are not now pail ably
hmm 'nent and apparent They exist none
the .ess certainly AMI the unforssen and
unexpected occasion Will me when sud
oenly they will lie precipitated upon US.
tn the 3 th day of une 10 the excess OF
revenue over public expenditure. after
complying with the annual re ,uirement
OF the sinking fund act, was &l1, So, 'ai ~.
DurIn the year ended June 80, lNs6, such
excess amounted to s.. 90 545 20 ana
d ring the year ended June ~, lSS7 II
reached the sum of So. 81, 81 ~. The an
nual contributions To the sinking fund
during the three years above specified,
amounting In the aggregate 10
el3SOoo,3.J -, and deductions from tho
surplus as stated were mad. 10y calling IN
for that Vurpo . outst pdlng three per
cent bonds OF the government.
MEASURES foR RELIEF TA,RN.
During the six month. prior TO June 80,
1887, the surplus reVehue had grown so
large ~ represented accumulations and
il was feared the withdrawal OF this great
sum of money, needed by the people
wou d so a ect the business OF the coun
try, that the sum OF 1. sol, lDJ OF such sur
plus was applied TO the payment OF the
principal and interest OF three per cent
bonds still outstanding and which were
then pays able at the option OF the govern
ment. The precarious condition OF hnan-
cial affairs among the people still needing
relief, Immediately after the 3Oth day OF
June, 1857, the remainder OF the three per
40 hnv, tlta "A linz inn
with principal and interest, TO the sum of
&lss1ajp0. were called in and applied TO
the sinking Iund contribution for the cur
. rent seal year. Notwithstanding these
. operations oil the treasury department
representations OF distress in business cir
Giles not only continued but increased, and
absolute peril seemed near at hand. In
these circumstances, the contribution to
the snkin- Iund for the current fiscal
year was at once completed by the ex.
penditure OF S27, -, 2o,.3l in the purchase
OF government bonds not yet due, bearing
four and four and hall per cent. Interest,
the premium thereon averaging about %
per cent. Tor the former and per
cent for the latter. In addition TO this
the interest account a cruing during the
current year upon the outstanding bonded
Indebtedness OF the government was to
some extent anticipated, and banks select
ed a. repositories of puunc money were
permitted 70 some what increase their de
posts.
While the expedients thus employed TO
release to the people the money lying in
the treasury saved to avert immediate
danger. our surplus revenues have contin-
ued 10 accumulate, the excess for the
present year amounting on the first day
of December TO So, =, ,o,l.lJ, and estimat-
ed TO reach the sum OF Sli3OcO,Ou on the
10Th of June next at which date II is ex-
pected that this sum, added to prior accu-
mutations, will swell the surplus in
L.. 70
seems to be no assurance that with
such withdr wal from u,e OF the peo-
pies circulating medium, our business
community may not in the near future
be subjected To the same distress which
was quite ately produced from the same
cause, and while the functions Of our ma
tional treasury should be few and simple,
and while its best condition would be
reached. ! believe, by It's entire discon-
nection with private business interests,
yet when, by perversion Of its purposes
IL idly holds money uselessly subtracted
from the channels OF trade there seems
TO be reason for the claim that legitimate
means should be devised by the govern
ment TO restore, in an emergency, without
waste or extravaganza, such money to its
place among the people.
no EXECUTIVE MEASURE or RELIEF.
IL such an emergency arises, there now
exists no clear and undoubted executive
power OF relief Heretofore the redemp-
y
which were payable at the option OF the
government, has afforded means for the
disbursement of the excess OF our reve-
nues: but these bonds have all been re-
tired, and there are no bonds outstanding
the payment OF which we have the right
TO insist upon. The contribution 70 the
sinking fund which furnishes the occasion
for expenditures in the purchase OF bonds,
has been already made for the current
year, so there is no outlet in that direc-
ton. In the present state OF legislation
the only pretense o. any existing execu-
tive power TO restore, at this time. any
part OF our surplus revenues TO the people
by its expenditure consists In the suppo-
sition that the secretary OF the treasury
may enter the marKet and purchase the
bonds of the government not yet due, at n
rate OF premium to he agreed upon. The
only provision OF law from which such a
power could lie derived rs ound in an APP
preparation bill, passed number OF years
ago, and IL is subject 20 the superstition
that it was intended "a temporary AMI
limited in It's application, instead OF
comforting a continuing discretion and
authority.